MPT Expands Reach with Steward Hospital Deal

Sinai New England is one of nine acute care hospital properties in the deal with Steward.

BIRMINGHAM, AL—Medical Properties Trust Inc., headquartered here, said Monday afternoon that it had agreed to acquire the real estate interests of nine Boston-area acute care hospitals operated by Steward Health Care System LLC from Steward’s management team and Cerberus Capital Management. The $1.25-billion deal includes a $1.2-billion investment in hospital real estate and a $50-million equity investment in Steward, the largest for-profit hospital system in the Massachusetts market. Separately, MPT announced a stock offering to partly fund the acquisition of the Steward properties, as well as its $900-million acquisition of 40 rehabilitation hospitals in Germany from Median Kliniken, originally announced in October of 2014.

“Since Steward’s inception in 2011, they have achieved outstanding results and now rank as the second largest hospital operator in New England, with the largest community-based network of physicians,” says Edward K. Aldag Jr., the REITs chairman, president and CEO. “Dr. Ralph de la Torre, Steward’s chairman and CEO, is recognized for his thought leadership in the healthcare industry, demonstrated by Steward’s innovative model in delivering healthcare to over 150 communities across Eastern Massachusetts, Rhode Island and Southern New Hampshire. We are very excited about the opportunities this relationship creates for both of us.”